Re: Nevermind: The answer
Heh, I was just coming to that conclusion myself, and it's kept me up way past my bedtime [img]/forums/images/icons/frown.gif[/img]
My reasoning, as ever is wordy.
Whenever you have aquired the company, you spend $x
Since all prices are equally likely, the actual worth of the company is going to be x/2 on average.
we know that this increases by 50%, so the worth becomes 3/2 *x/2 =3x/4
So on the occasions we purchase the company we lose x/4 or .25x on the deal.
The occasions we purchase it happen to be x% of the time, so we lose the .25x a grand total of x% of the times we bid.
which thankfully gives us x/100 * x/4 = (x^2)/400
which thankfully gives us .0025x^2 loss without me having to remember how to integrate [img]/forums/images/icons/laugh.gif[/img]
I'm sorry I keep posting these weird solutions, but I like to give hope to the less mathematically gifted (like myself)and show that , although logic has to be even more rigorous than usual, it IS possible to solve a lot (though I concede not all) of these problems without real training in the subject.
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